CLOB vs. PAAA

Last updated Jun 4, 2026

CLOB (VanEck AA-BB CLO ETF) and PAAA (PGIM AAA CLO ETF) are both CLO funds. Both are actively managed. Over the past year, CLOB returned 6.36% vs 5.26% for PAAA. At a 0.23 correlation, their price movements are largely independent. CLOB charges 0.45%/yr vs 0.19%/yr for PAAA.

Performance

CLOB vs. PAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck AA-BB CLO ETF (CLOB) and PGIM AAA CLO ETF (PAAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CLOB achieves a 1.88% return, which is significantly lower than PAAA's 2.03% return.

CLOB

• 1D: 0.01%
• 1M: 0.47%
• YTD: 1.88%
• 6M: 2.35%
• 1Y: 6.36%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAAA

• 1D: -0.01%
• 1M: 0.40%
• YTD: 2.03%
• 6M: 2.45%
• 1Y: 5.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

CLOB vs. PAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CLOB VanEck AA-BB CLO ETF	1.88%	6.94%	2.81%
PAAA PGIM AAA CLO ETF	2.03%	5.37%	1.85%

Correlation

The correlation between CLOB and PAAA is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (All Time) Calculated using the full available price history since Sep 26, 2024	0.23

Return for Risk

CLOB vs. PAAA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CLOB

CLOB Risk / Return Rank: 68
CLOB Sharpe Ratio Rank: 63
CLOB Sortino Ratio Rank: 66
CLOB Omega Ratio Rank: 75
CLOB Calmar Ratio Rank: 65
CLOB Martin Ratio Rank: 74

PAAA

PAAA Risk / Return Rank: 99
PAAA Sharpe Ratio Rank: 99
PAAA Sortino Ratio Rank: 99
PAAA Omega Ratio Rank: 100
PAAA Calmar Ratio Rank: 99
PAAA Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CLOB vs. PAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck AA-BB CLO ETF (CLOB) and PGIM AAA CLO ETF (PAAA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	CLOB	PAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.15	10.83	-8.69
Sortino ratio: Return per unit of downside risk	3.09	21.80	-18.71
Omega ratio: Gain probability vs. loss probability	1.46	6.72	-5.27
Calmar ratio: Return relative to maximum drawdown	3.27	30.32	-27.05
Martin ratio: Return relative to average drawdown	14.04	187.65	-173.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CLOB vs. PAAA - Sharpe Ratio Comparison

The current CLOB Sharpe Ratio is 2.15, which is lower than the PAAA Sharpe Ratio of 10.83. The chart below compares the historical Sharpe Ratios of CLOB and PAAA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CLOB	PAAA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.15	10.83	-8.69
Sharpe Ratio (All Time) Calculated using the full available price history	1.27	6.78	-5.52

Drawdowns

CLOB vs. PAAA - Drawdown Comparison

The maximum CLOB drawdown since its inception was -5.54%, which is greater than PAAA's maximum drawdown of -1.04%. Use the drawdown chart below to compare losses from any high point for CLOB and PAAA.

Drawdown Indicators

	CLOB	PAAA	Difference
Max Drawdown Largest peak-to-trough decline	-5.54%	-1.04%	-4.50%
Max Drawdown (1Y) Largest decline over 1 year	-1.96%	-0.17%	-1.79%
Current Drawdown Current decline from peak	-0.13%	-0.01%	-0.12%
Average Drawdown Average peak-to-trough decline	-0.30%	-0.02%	-0.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.45%	0.03%	+0.42%

Volatility

CLOB vs. PAAA - Volatility Comparison

VanEck AA-BB CLO ETF (CLOB) has a higher volatility of 0.97% compared to PGIM AAA CLO ETF (PAAA) at 0.11%. This indicates that CLOB's price experiences larger fluctuations and is considered to be riskier than PAAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CLOB	PAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.97%	0.11%	+0.86%
Volatility (6M) Calculated over the trailing 6-month period	2.46%	0.36%	+2.10%
Volatility (1Y) Calculated over the trailing 1-year period	2.98%	0.49%	+2.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.53%	0.98%	+4.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.53%	0.98%	+4.55%

CLOB vs. PAAA - Expense Ratio Comparison

CLOB has a 0.45% expense ratio, which is higher than PAAA's 0.19% expense ratio.

Dividends

CLOB vs. PAAA - Dividend Comparison

CLOB's dividend yield for the trailing twelve months is around 6.42%, more than PAAA's 4.88% yield.

Position	TTM	2025	2024	2023
CLOB VanEck AA-BB CLO ETF	6.42%	6.61%	1.65%	0.00%
PAAA PGIM AAA CLO ETF	4.88%	5.12%	5.88%	2.76%

Frequently Asked Questions

Can I hold both CLOB and PAAA in my portfolio?

CLOB and PAAA have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CLOB or PAAA?

CLOB has higher volatility (0.97%) compared to PAAA (0.11%). In terms of maximum drawdown, CLOB dropped -5.54% vs PAAA's -1.04%.

Which ETF is better, CLOB or PAAA?

On 1-year performance, CLOB leads with 6.36% vs 5.26% for PAAA. On fees, PAAA is cheaper at 0.19% per year. On volatility, PAAA has been the lower-risk option at 0.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CLOB or PAAA?

Over the 1-year period, CLOB has performed better with a 6.36% return vs 5.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CLOB or PAAA?

PAAA is cheaper with a 0.19% expense ratio, compared with 0.45% for CLOB.

Which ETF pays a higher dividend yield, CLOB or PAAA?

CLOB has the higher dividend yield at 6.42%, compared with 4.88% for PAAA.

What is the main difference between CLOB and PAAA?

They also come from different issuers: VanEck and PGIM. Their fees differ too: 0.45% for CLOB and 0.19% for PAAA.

Which has better risk-adjusted returns?

PAAA currently has the higher Sharpe Ratio (10.83 vs 2.15), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.